What happens when you PORT a mortgage

port_pendennis

Hi

This is my first post so please bear with me -
I am going to port my mortgage because it is at a very good rate, I have been in touch with C & G and they have agreed that I can port it , but I will have to go through the credit checks again but the rate is portable for life of the mortgage.

Can someone explain to me what happens The house I am selling is £400k
and the mortgage is 130k they have agreed to port the 130k to a new property, the problem is someone wants to purchase my house and I cannot immediately find another one to buy.

Once the checks have been done on my finances and proved to be OK for the C & G can I sell the house and wait a couple of months before buying another one or does the transaction have to be done altogether eg sell and buy.

I am not sure when the sale of my house goes through if they pay of the mortgage on the old property anything left over comes to me, then when I am ready ( as long as I am within the term ) I can buy another property and as long as the house I am buying is for the exact amount and meets the surveyors regulations. They will give me the 130K at the same rate as the old mortgage.

I hope that I have made this clear if not please just let me know and I will try again.

Thanks to all

Port Pendennis

v.rajput

Hello,

Im kinda in the same boat, we too are looking for a new house and will be able to port the mortgage across:

I will email halifax right now, if you get anymore infor let me know

good luck

vj

ClaireB7

My sister is about to do the same thing (not sure which lender they are with). They have just sold their house but haven't bought their new one yet (not even found one).

Their lender will let them port the mortgage over but has given them a 3 month deadline to get the new house. After 3 months then they have to pay the early redemption fees.

mickeyfinn1

We are porting just now and if you complete the sale and move into a new house on the same day you are not fined early redemption fee's (so long as you are porting the same value to the new house - we are buying a cheaper place so have to pay a proportion of early redemption fee's).

If however, you can;t find a new place the bs will give you so many months grace BUT they may charge you the early redemption fee on the sale of your house and give it back to you when you buy the new place. We are with Nationwide and this is what they do - they also say it may take 6 months to get the money back so a real incentive to find a new place pronto!

fabjenni

Check with your lender, (if you can find your old mortgage offer/kfi it may also give you this info) most give a 6 month window to find a new property, but you may have to pay any erc's when you redeem the mortgage & then get them refunded when you find new property and they won't hold the porting offer out indefinitely so you need to be sure that you will find a new property within what ever window they stipulate

port_pendennis

Hi

When you sell your house what happens to the mortgage amount that you owe to the BS - is it paid off and then you start again with the new rate when you buy the new house.

thanks

This porting sounds like a good idea - we do not have any early redemption fees on ours

_Andy_

Bear in mind porting is never guaranteed and the application will be treated as a new one, i.e. you still need to meet their criteria for that product.

Leralc

In light of the credit crunch we no longer meet the criteria for the mortgage (we have a 5x salary) mortgage. I enquired about porting the mortgage and was old we could, but now im thinking it might not be the case if we have to meet the lending criteria! bearing in mind my mortgage is with IF and they no longer offer new mortgages!

we shall have to see otherwise we are stuck here for the forseeable future

edit:

Just spoke to Bank and I can port my mortgage without having to reply as long as i dont want to borrow any more and as long as I sell and move on the same day!! result

makes a change :rotfl: